Guidance

Process for considering UK Internal Market Act exclusions in Common Framework areas

Published 10 December 2021

Delegated powers under sections 10 and 18 of the UK Internal Market Act 2020 allow changes to exclusions from the application of the Act’s market access principles.

The UK Government, Northern Ireland Executive, Scottish Government and Welsh Government have developed the following process for the consideration of exclusions from the UK Internal Market Act in areas where a Common Framework agreement exists between the UK Government and one or more of the Devolved Administrations, consistent with the Common Frameworks principles agreed by JMC(EN) in 2017^{[footnote 1]}.

Proposal and consideration of exclusions

1. Sections 10 and 18 and Schedules 1 and 2 of the UK Internal Market Act contain provisions excluding the application of the United Kingdom market access principles in certain cases.

2. Whenever any party is proposing an amendment to those Schedules in areas covered by a Common Framework:

a. the exclusion seeking party should set out the scope and rationale for the proposed exclusion; and

b. consideration of the proposal, associated evidence and potential impact should be taken forward consistent with the established processes as set out in the relevant Common Framework, including an assessment of direct and indirect economic impacts.

3. It is recognised that all parties will have their own processes for considering policy proposals. Administrations should consult and seek agreement internally on their position before seeking to formally agree the position within the relevant Common Frameworks forum.

Agreement of an exclusion request

4. Where policy divergence has been agreed through a Common Framework this should be confirmed in the relevant Common Framework forum. This includes any agreement to create or amend an exclusion to the UKIM Act 2020’s market access principles.

5. Evidence of the final position of each party regarding any exclusion and whether an agreement has been reached should be recorded in all cases. This could take the form of an exchange of letters between appropriate UK Government and Devolved Administration ministers and include confirmation of the mandated consent period for Devolved Administration ministers regarding changes to exclusions within the Act^{[footnote 2]}.

6. Parties remain able to engage the dispute resolution mechanism within the appropriate Common Framework if desired.

Finalising an exclusion

7. Under section 10 or section 18 of the UK Internal Market Act 2020 amendments to the schedules containing exclusions from the application of the market access principles require the approval of both Houses of the UK Parliament through the affirmative resolution procedure. Where agreement to such an exclusion is reached within a Common Framework, the Secretary of State for the UK Government department named in the Framework is responsible for ensuring that a draft statutory instrument is put before the UK Parliament.

1. Joint Ministerial Committee (EU Negotiations) Communique: 16 October 2017. ↩

2. Under section 10(9) and 18(8) of the UK Internal Market Act 2020 the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland before regulations are made under those sections. ↩